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Flooz.com to File for Bankruptcy

August 27, 2001

NEW YORK (AP) _ Online currency site Flooz.com Inc., which made a splash with billboards and TV advertisements featuring Whoopi Goldberg, has shut down and plans to file for bankruptcy protection, the company announced on its Web site.

Flooz.com, which earlier this month suspended operations and had been seeking a partner, said in a statement posted on its Web site over the weekend that it ``had been adversely affected by dramatic changes in capital markets and the general slowdown in the economy.″

The New York-based company had been in ``merger discussions with a number of companies but was unable to find a suitable partner,″ the statement said.

Company officials could not immediately be reached for comment Monday.

Flooz.com had also been a victim of Internet fraud, which may have sped up its demise, according to a report Monday in The New York Times.

The Times, citing a person close to Flooz.com, reported that the company had unknowingly sold $300,000 of its currency, known as flooz, over the last three months to a ring of credit card thieves in Russia and the Phillipines before being notified by the FBI.

Stolen credit cart numbers were used online to purchase the online currency. The site had more than 30 retail partners.

Flooz’s credit card processing company, which was not identified in the article, also notified the online currency site, after Flooz.com charges showed up on monthly statements of those consumers whose credit card numbers had been stolen.

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